Nokia clearly faced huge headwinds — dramatic changes in the industry and mobile technology. To achieve this, the company assigned different employees to different agendas and requested them to share the agenda with the public. – A new leadership team and organizational structure with a clear focus on speed, results and accountability Windows Phone to become Nokia’s primary smartphone platform = huge. In a span of six months, the company had started witnessing inventions as employees seek to enhance organizational operations. By 2010, du had acquired almost 40% of the region’s market share, and it was able to maintain a growth rate of over 32%.The company’s leadership had no desire to rest on their laurels, though. Currently, Nokia Corporation is among the companies that manufacture quality smart phones globally. All the other employees retained their original jobs. Unfortunately, your browser is too old to work on this site. During this period, the company dealt with paper products, which it exported to Great Britain and Russia. The company reduced the number of its business units to four. If you continue browsing the site, you agree to the use of cookies on this website. Nokia Corporation reconstructed its initial modular teams (Ropponen 2008). With this transaction, Nokia expects to create an innovation leader in next generation technology and services for an IP connected world, and to … Previously, employees made limited contribution to organizational policies (Krell 2000). Figure 1 – … Nokia’s organizational structure is horizontal and it allows for greater flexibility and speedy communication channels between different departments. In 1981, a mobile network was launched in Scandinavian, prompting Nokia Corporation to manufacture its first car phones. Through the program, customers shared their views about the company and changes they wish the company to make, thus, spurring employee creativity. The design team argued that the traditional system of communication made it hard for the company to achieve its goals. This mishmash of traditional communication mechanisms and novel forms of relations established an upsurge of fervor (Masalin 2003). It implemented the entire change within one week. Clipping is a handy way to collect important slides you want to go back to later. How many pages (words) do you need? 1. The firm Monika is originally from Finland and Microsoft has been spawned in Silicon Valley California. PRAJNA S(M150025MS). phones for the use of business and phones for the use of governmental authorities, and country- or continent-specific sales organizations. Macroeconomic and Microeconomic Analysis of Nestle Nutrition, Factors influencing organizational change, Product and Innovation Management of Nokia, The Role of the Financial Manager - Nokia, The Credit Card Fraud Cases in the Hospitality Industry, TMO Analysis: “Wave and Wind in One", Emerging Technology by Floating Power Plant. At least a hundred change leaders participated in every workshop. Nokia announced further steps to align its organizational structure to its strategy, strengthen its leadership team and position the company for success in the 5G era. Organizational Change Models There are two possible organizational change models that the Nokia used in establishing their efforts that falls under the Strategic Planning model. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. You can change your ad preferences anytime. 2019. To implement the change, the company required a hundred employees taking new jobs. 161-165. 2, pp. The Mobile Solutions group will be led … To implement the change, the company required a hundred employees taking new jobs. Exhibit 1 Nokia's Organisation Structure, 2003-2008 5. The United Arab Emirates’ du Telecom provides mobile and fixed telephony, broadband connectivity, and IPTV to consumers and businesses. Customer Code: Creating a Company Customers Love, Be A Great Product Leader (Amplify, Oct 2019), Trillion Dollar Coach Book (Bill Campbell). 2. Copyright © 2021 - IvyPanda is a trading name of Edustream Let's see if we can help you! The values of Nokia are customer satisfaction, respect for individuals, achievement and continuous learning. In early 20th century, the company concentrated on manufacture of wheelchair frames and rubber boots. He delayered Nokia’s management structure, creating a flatter organisation. Lessons from Nokia. Figure 1 – … Nokia’s organizational structure is horizontal and it allows for greater flexibility and speedy communication channels between different departments. But several things kept getting in the way. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. The company then disseminated the ideas to employees and customers through the Nokia Booster program. Nokia and the Adaptive Cycle Despite their equilibrium in the market, internally the leadership ‘crisis’ and the problems with the matrix structure slowed Nokia down, allowing their competitors to gain in on them. The design team resolved to organize a workshop “with team leaders followed by the much broader involvement of the whole community through an online social network community” (Masalin 2003, p. 69). Nevertheless, it could hardly achieve this without fostering cooperation between the employees. Consequently, the company required a communication structure that could keep pace with the contemporary marketplace. PRESENTED BY All the other employees retained their original jobs. Need a custom Case Study sample written from scratch by In 2004, Nokia Company started restructuring its operations as a way to satisfy customer aspirations. In addition, the company manufactures other consumer products like mobile networks, set-top boxes, and apparatus for broadband internet. Moreover, Nokia Corporation supplies the motor industry with car speakers (Kautto 2009). Nokia has … This sudden change was to be done to improve agility. Senior management understood that it had to improve its proprietary operating system, Symbian. To prevent this, it’s important to make the desire for change tangible to all employees. In the case of digital transformation, the teams who build and maintain the technology must be fully engaged. At the same time, Nokia Corporation helped Finland, Germany, China, Poland, Italy, and Mexico to repair network for their entertainment industries (Ropponen 2008). There is various kind of approach and two are picked-up for careful examination. Indeed, the program led to numerous innovations in the company. The Booster led to open discourse between frontline workers, community members, and managers about challenges affecting the company. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. "Change Management in Nokia Company." In addition, employees shared ideas on changes they considered unfeasible, thus, helping the company pursue feasible goals only (Masalin 2003). IvyPanda. Technologies LLC, a company registered in Wyoming, USA. "Change Management in Nokia Company." In 2010, Stephen Elop joined the company’s management team. IvyPanda. MARIA FRANCIS(M150032MS) Monday, November 26, 2018 | Comments. Nokia managed to overcome its mistake of allowing competitors like Motorola to run away with product innovations like flip phones. The organizational structure was also changed to a more integrated one, which closely resembled the pre-matrix structure. Senior managers came up with ideas concerning the innovations they would like to introduce into the company (Masalin 2003). 8 – 14. Nokia’s decline in mobile phones cannot be explained by a single, simple answer: Management decisions, dysfunctional organisational structures, growing bureaucracy and deep internal rivalries all played a part in preventing Nokia from recognising the shift from product-based competition to one based on platforms. One of the key factors that prompted Nokia Corporation to come up with the Nokia Booster program was the pressure to exploit the global market. Change Management in Nokia Company. (2019) 'Change Management in Nokia Company'. 5 no. December 28, 2019. https://ivypanda.com/essays/change-management-in-nokia-company/. 68-72. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. Nokia is the leading mobile company all over the world which started their operation in the early 1980s. The work culture of Monika encompasses change because since its advent the company has changed so many times with time. A new leadership team and organizational structure with a clear focus on speed, results and accountability; Nokia plans to form a "strategic partnership with Microsoft to build a global mobile ecosystem based on highly complementary assets". Retrieved from https://ivypanda.com/essays/change-management-in-nokia-company/. Kurt Lewin's model of change demonstrates planned change approach. The devices unit looks after the development and management of mobile devices portfolio which is targeted at all major consumer segments. Even today, some brands of bicycle tires bear the company’s name. Among them include desire to, attain global coverage, embrace employee empowerment, promote co-creation, and support the community. The program helped the company to establish a platform by which it could get opinions from all the stakeholders, therefore, coming up with products that meet all the desired specifications. The management brought the former paper mill section and the rubber works together to establish a technological company. See our User Agreement and Privacy Policy. An organisational change can be achieved only bringing behavioural changes in the individuals of the organisation. An effective organizational structure looks into qualitative and quantitative issues of the structure were it ensures that both human resources matters and physical combination of resources have been addressed accordi… DEEPAK VENUGOPAL(M150002MS) The Nokia Booster program acted as an avenue through which the company fostered cooperation between employees in different departments. An organization is defined as an integration of processes with a single purpose; to attain the expected goal of an organization, management needs to develop and effective working organizational structure. Organisational change the Elop way Having already made it plain that a complete overhaul was needed, Elop signed a strategic partnership with Microsoft. It started from wood pulp to wire telecommunication to mobile devices giant. APIdays Paris 2019 - Innovation @ scale, APIs as Digital Factories' New Machi... No public clipboards found for this slide. 1. The HR practices at Nokia are perfectly found to be aligned with the 1, pp. The company established a com… Moreover, NokiaMobile87 had a coherent structure and rather few subunits: the two product-based units, i.e. For full functionality of this site it is necessary to enable JavaScript. The company continues coming up with novel inventions in line with the emerging technologies. 9. The modern Nokia Company was established in 1967. The company learnt that employees could be active if allowed to manage debates that fascinated them. The company came up with a program dubbed “the Nokia Booster program”, which aimed at bringing together online customers and the company’s strategic development (Schienstock 2004). The change of the organization structure is meant to ensure that Nokia Corporation remains competitive in cell phone market. Espoo, Finland - Nokia today announced the planned leadership and organizational structure that it intends to implement after and subject to the successful closing of the public exchange offer for Alcatel-Lucent securities announced on April 15, 2015. "These changes are designed to accelerate the execution of our strategy," said Nokia President and CEO Rajeev Suri. Espoo, Finland - Nokia today announced changes in its organizational structure and Group Leadership Team (GLT), effective from April 1, 2017. 103-125. In 2010, Nokia’s financial income was $2.6 billions. Keeping in mind that, what will best suit the customers and what are their needs, Nokia rando… There are various models used to implement change and strategy effectively within an organization. Whether the degree of change is big or small, it is occurring at an accelerated rate, as organizations need to respond to new technology, customers’ tastes & preferences, ... To identify the driving forces of change for Nokia & GM. Looks like you’ve clipped this slide to already. Together, the company would develop smartphones using the Windows mobile platform: Symbian was officially dead. In 2004, Nokia Corporation made it public that it intended to begin organizational change, which aimed at helping the company meet changing consumer needs. Change is something that should be embraced rather than feared. IvyPanda, 28 Dec. 2019, ivypanda.com/essays/change-management-in-nokia-company/. Masalin, L 2003, ‘Nokia leads change through continuous learning’, Academy of Management Learning & Education, vol. Kautto, P 2009, ‘Nokia as an environmental policy actor: Evolution of collaborative corporate political activity in a multinational company’, Journal of Common Market Studies, vol. Organizational Structure at Nokia Organizational Structure at Nokia. This case study on Change Management in Nokia Company was written and submitted by your fellow student. 3. Currently, the company dominates the mobile phone market with a market share of over 38.6 percent. 13 no. Ropponen, T 2008, ‘The Nokia story of using action learning’, Action Learning: Research and Practice, vol. 1, pp. professional specifically for you? Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible. Most commonly used is Kurt Lewin's model of change also known as three-step model. Online community took the centre stage in steering the changes. You are free to use it for research and reference purposes in order to write your own paper; however, you must. Nokia has their dedicated sales and marketing personnel’s with logistic and sourcing functions. If you continue browsing the site, you agree to the use of cookies on this website. The two models are Alignment Model and Scenario Planning Model. The online community furnished employees with information concerning potential changes that could benefit the company, therefore, helping them initiate innovations. Organizational change can take many forms. Nonaka, I & Teece, D 2001, Managing Industrial Knowledge: Creation, Transfer and Utilization, SAGE Publications Ltd, London. ANJU DONY(M150011MS) Nokia's latest organizational structure Nokia Along with the change in business units comes a management shakeup. ensure the integrity of our platform while keeping your private information safe. Nokia Announces Further Organizational Changes. There have been changes in technology and competition, in the market place. Nokia Corporation merged with Siemens to form one of the biggest telecommunication networks dubbed Nokia Siemens Networks. 2 no. Secondly, employees were taking commands and instructions from multiple managers due to weak hierarchy and undefined organizational structure. Prior to the program, the company relied on a communication structure where information was conveyed from the top management, down to the employees through a number of senior staff (Schienstock 2004). Management team in Nokia Corporation maintained that, for the company to perform, it required exploiting the vast experience and knowledge; its employees possessed. It implemented the entire change within one week. Nokia celebrated over a decade of market leadership in the telecommunications and hand held cellular phone industry and as recently as 2013 Nokia shifted its full attention towards network technologies conducting an organizational change at a grand scale. This helped the company to gather information from the public, therefore, aligning its operations with customer needs. This became the Nokia’s employees so frustrated and confused those that they even were not able to perform up to the standard (Gibson, 2011). IvyPanda. A number of factors contributed to the restructuring process. The program helped the company to reach its target customers in remote areas where it was hard for employees to reach (Nonaka & Teece 2001). It may involve a change in a company’s structure, strategy, policies, procedures, technology, or culture. A change in the organisation cannot be achieved by bringing changes in the group, teams or company. Engineer Fredrik Idestam established the company in 1965. 47 no. 28 December. Competition, technological changes, political changes and legal changes are examples of the external environment. Major engineering and organizational moves will be made by Microsoft over the next month, according to CEO Satya Nadella. Only with change will businesses be able to lay the foundations for long-term success.According to Cambridge Dictionary, organizational change is:“A process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets.”Many people would disagree with Cambridge Dictionary’s descrip… This structure was significantly responsible for the growth that Nokia saw in this period, especially in the emerging markets. Change at Nokia will be planned change process developed to get long term effects and can be mapped with Kurt Lewin's model of … techniques that improve an organizational structure. Schienstock, G 2004, Embracing the knowledge economy: the dynamic transformation of the Finnish Innovation System, Edward Elgar Publishing, Northampton. The change may be planned years in advance or may be forced on an organization because of a shift in the environment. To make sure that employees backed the company’s agendas, Nokia Corporation had to come up with mechanisms that would captivate the employees. (2019, December 28). Hence, the company required a platform that would help it involve all its stakeholders in pursuing organizational goals. The following chart shows Nokia's organizational structure: Nokia India Private Limited first started operations in India in 1995, and presently operates out of offices in Gurgaon, New Delhi, Mumbai, Kolkata, Bangalore, Hyderabad and Ahmedabad, covering the whole of … In 2013, du Telecom signed a M… Changing the Organizational Structure: Nokia was operating on the mechanistic organizational structure when it suddenly though of shifting to the matrix structure. The company was in need for establishing a single access point through which it could communicate with all its target consumers, and employees worldwide. IvyPanda. Organisational Change at Nokia Change is an unavoidable process or a phenomenon. The corporation organized for workshops in different cities across the globe. The program started with a design team led by Ian Gee and Maximilian Kammerer. As of October 1, 2009 the organizational structure at Nokia was extremely mobile and flexible. Nokia Corporation reconstructed its initial modular teams (Ropponen 2008). Organizational Structure Overall the organizational structure of Nokia can be characterised as flat structure and the organizational culture of Nokia is highly impacted by the technological nature or aspect of the business. Krell, T 2000, ‘Organizational longevity and technological change’, Journal of Organizational Change Management, vol. "Over the course of July, the … See our Privacy Policy and User Agreement for details. Customer satisfaction means how satisfaction is the customer with the effort of organisation in the marketplace. In 1987, the company manufactured its first mobile phone. Your privacy is extremely important to us. Besides, the company needed to be sure that its employees are aware of the value of the projects the company initiates. In 2004, Nokia Corporation made it public that it intended to begin organizational change, which aimed at helping the company meet changing consumer needs. "Change Management in Nokia Company." This is IvyPanda's free database of academic paper samples. Ropponen posits, “The genesis of the Booster Programme, launched in late 2008, could be traced to the wide involvement of the strategy-planning process and to the flexibility and project orientation of the modular structure” (2008, p. 163). But this decision was not welcomed by all the stakeholders, and this is why the top management started to leave the company. 1, pp. The company is popular for manufacturing mobile phones. To enhance its performance, Nokia Corporation required having a platform through which it could share its agendas with employees. The database is updated daily, so anyone can easily find a relevant essay example. The company established a common platform through which all employees shared their ideas to help the company to address customer ambitions. The company reduced the number of its business units to four. December 28, 2019. https://ivypanda.com/essays/change-management-in-nokia-company/. Such a communication structure was slow. We will write a custom Case Study on Change Management in Nokia Company specifically for you for only $16.05 $11/page. "Change Management in Nokia Company." External environment plays a very crucial role in the operations of a company. The company began operating in 2006 in a highly competitive market. December 28, 2019. https://ivypanda.com/essays/change-management-in-nokia-company/. We utilize security vendors that protect and Nokia Corporation is an international communication firm whose headquarters are situated in Espoo. After the workshops, participants went back to their organizations, where they recruited employees into the adopted change processes. The solutions department ensures that it continuously develops solutions whereby ensuring that a particula… Now customize the name of a clipboard to store your clips. Nokia Corporation could achieve this by involving the employees in formulation and implementation of the projects (Masalin 2003). IvyPanda. Managing Organizational Change : Hrm 587 ... Employee-Driven Values Change: A Study of Nokia’s Leadership Nokia is a global company headquartered in Espoo, Finland which employs about 55,000 people worldwide (Nokia, 2014). Examples on a wide variety of topics, all donated by helpful students different departments stage... To manufacture its first car phones in steering the changes continue browsing the site, you agree to the of... Mobile networks, set-top boxes, and managers about challenges affecting the company required a communication structure that keep! To introduce into the adopted change processes to later nevertheless, it could share its agendas with employees and! Used is Kurt Lewin 's model of change demonstrates planned change approach Nokia company specifically for you only... Decision was not welcomed by all the stakeholders, and support the community sales... Their operation in the market place communication mechanisms and novel forms of relations established an of... Mobile network was launched in Scandinavian, prompting Nokia Corporation merged with Siemens form... By ANJU DONY ( M150011MS ) DEEPAK VENUGOPAL ( M150002MS ) MARIA FRANCIS ( )! Presented by ANJU DONY ( M150011MS ) DEEPAK VENUGOPAL ( M150002MS ) MARIA FRANCIS ( M150032MS ) s. A highly competitive market Finland and Microsoft has been spawned in Silicon Valley California continues coming up with inventions. 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